Corrective Action Plans

Finding 1236556 (2025-002)

Material Weakness 2025

MD

Subrecipient Monitoring Reporting

Views of Responsible Officials: While BCHC missed a deadline in registering a subaward to the FFATA Subaward Reporting System, it is important to note that doing so is in our policy and is part of our standard check list. The deadline was an oversight for the subaward in question and has been correc...

Views of Responsible Officials: While BCHC missed a deadline in registering a subaward to the FFATA Subaward Reporting System, it is important to note that doing so is in our policy and is part of our standard check list. The deadline was an oversight for the subaward in question and has been corrected with training. BCHC will exercise diligence in assuring awards are registered in a timely manner.

View Audit 412104

Finding 1236520 (2025-001)

Material Weakness 2025

Homeward Bound Inc.

TX

Reporting Cash Management

Root Cause: The organization failed to correctly process claims under the correct contract. Once errors were detected, a correction was attempted in the CMBHS system, but the system reprocessed the claim with the original incorrect data and it could not be corrected. In addition, finance personnel l...

Root Cause: The organization failed to correctly process claims under the correct contract. Once errors were detected, a correction was attempted in the CMBHS system, but the system reprocessed the claim with the original incorrect data and it could not be corrected. In addition, finance personnel lacked sufficient knowledge and training on how to prepare a Schedule of Expenditures of Federal Awards (SEFA) that accurately reconciles to the general ledger (GL). Corrective Action: 1. Review of existing policies and procedures for completeness. 2. Require supervisory review and approval of all grant-related expenditures prior to posting in external CMBHS system. 3. Continue to conduct training for finance staff on importance of data accuracy when processing in external systems. 4. Continue to reach out to CMBHS help desk and our contract manager to address issues as they arise. 5. Continue to perform monthly and quarterly internal monitoring reviews of grant expenditures to submitted claims. 6. Review of SEFA report with accounting team prior to submission to auditors Responsible Person: Patricia Guerra Implementation Date: • Supervisory review implementation: September 15, 2026 • Staff training: September 15, 2026 • Monthly and Quarterly monitoring reviews: Beginning September 30, 2026 Expected Outcome: All federal grant claims will be processed under the correct contract reducing the risk of future noncompliance

View Audit 412067

Finding 1236506 (2025-003)

Material Weakness 2025

GULF OF ALASKA KEEPER

AK

Reporting Significant Deficiency

Finding 2025-003: Noncompliance over Reporting Name of Contact: Eileen Zaiser, Controller Corrective Action: Controller will maintain a digital calendar with multiple reminders of program reporting dates to begin one month in advance of each due date. He/she will relay due-date reminders to responsi...

Finding 2025-003: Noncompliance over Reporting Name of Contact: Eileen Zaiser, Controller Corrective Action: Controller will maintain a digital calendar with multiple reminders of program reporting dates to begin one month in advance of each due date. He/she will relay due-date reminders to responsible staff and monitor status of report completion to ensure timely submission. Proposed Completion Date: September 10, 2026.

View Audit 412036

Finding 1236483 (2025-001)

Material Weakness 2025

California Invasive Plant Council

CA

Reporting Internal Control / Segregation of Duties

Finding Reference Number: 2025-001 Description of Finding: The annual SF-425 for the period ended June 30, 2025, was submitted on January 30, 2026, approximately four months after its September 30, 2025 due date. In addition, the first-quarter 2025 progress report was submitted on May 6, 2025, six d...

Finding Reference Number: 2025-001 Description of Finding: The annual SF-425 for the period ended June 30, 2025, was submitted on January 30, 2026, approximately four months after its September 30, 2025 due date. In addition, the first-quarter 2025 progress report was submitted on May 6, 2025, six days after its April 30, 2025 due date. Statement of Concurrence or Nonconcurrence: The California Invasive Plant Council agrees with the audit finding. Corrective Action: The California Invasive Plant Council Program team and Finance team will share a reminder of a report’s due date, with members of both teams invited, on their respective Outlook calendars with a pop-up reminder appearing at least 2 weeks prior to the due date of the reports. After a grant agreement is executed, a coordination meeting between the Director of Finance, Operations, and Administration (DFOA) and the Grants & Contracts Manager (GCM) will occur to identify the report due dates and address any other special grant needs. After the meeting, the GCM will send a list of the identified report due dates to the DFOA who will set the date reminder and invite members from both teams to it. The goal is to reconcile the grant expenses by both teams and to complete and review the report well in advance of the EPA (or other federal agency) due dates to ensure timely submission of required reports. Name of Contact Person: Jutta Burger, Executive Director, 510-843-3902 Ext 305 Projected Completion Date: The California Invasive Plant Council anticipates resolving this audit finding by October 2026. It will be monitored and confirmed by the Executive Director and/or the Director of Finance, Operations, and Administration, in association with the Grants & Contracts Manager and the Finance Team.

View Audit 412016

Finding 1236480 (2025-001)

Material Weakness 2025

Internews Network

CA

Subrecipient Monitoring Reporting § 200.303

Views of Responsible Officials: Management acknowledges the finding and the challenges encountered in providing supporting documentation for FFATA reporting activities during the audit. Management maintains that established FFATA reporting procedures were followed and that required reporting activit...

Views of Responsible Officials: Management acknowledges the finding and the challenges encountered in providing supporting documentation for FFATA reporting activities during the audit. Management maintains that established FFATA reporting procedures were followed and that required reporting activities were performed during the period under audit. Following the abrupt termination of significant U.S. Government funding, Internews implemented substantial reductions in force that affected personnel responsible for grant compliance, reporting oversight, and record retention. As a result, key staff members with primary responsibility for FFATA reporting and supporting documentation were no longer available to assist with the retrieval, explanation, or validation of records requested during the audit process. While management believes that applicable FFATA reporting requirements were met, the organization was unable to provide sufficient supporting documentation to demonstrate compliance for all items selected for testing. Management recognizes the need to strengthen record retention and knowledge-transfer procedures to ensure continuity of documentation during periods of organizational transition and staffing reductions. Management will evaluate opportunities to further centralize reporting records and strengthen controls surrounding the retention of compliance documentation.

View Audit 412014

Finding 1236341 (2025-003)

Material Weakness 2025

Community Foundation of Northern Nevada

NV

Internal Control / Segregation of Duties Allowable Costs / Cost Principles Reporting § 200.303

Federal Agency Name: Department of Treasury Assistance Listing Number: 21.027 Program Name: Coronavirus State and Local Fiscal Recovery Funds Finding Summary: The Foundation did not have internal controls to ensure proper review and approval (segregation of duties) between the preparer and reviewer ...

Federal Agency Name: Department of Treasury Assistance Listing Number: 21.027 Program Name: Coronavirus State and Local Fiscal Recovery Funds Finding Summary: The Foundation did not have internal controls to ensure proper review and approval (segregation of duties) between the preparer and reviewer of the quarterly financial reports. Corrective Action Plan: Previous reports were compiled by the Foundation’s vendors and submitted by the prior CFO. Future reports will be prepared by the Accountant and reviewed by the CFO prior to submission. Responsible Individuals: Alisha Kinnison, Accountant and Matt Lazar, CFO Anticipated Completion Date: July 2025

View Audit 412006

Finding 1236337 (2025-005)

Material Weakness 2025

Kanabec County

MN

Allowable Costs / Cost Principles Internal Control / Segregation of Duties Cash Management

ALLOWABLE COSTS Recommendation: It is recommended the County implement procedures to ensure appropriate individuals are included in the account codes used for reporting and on the random moment studies. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. ...

ALLOWABLE COSTS Recommendation: It is recommended the County implement procedures to ensure appropriate individuals are included in the account codes used for reporting and on the random moment studies. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The County will ensure appropriate individuals are included. Name of the contact person responsible for corrective action plan: Kelly Christianson, Auditor-Treasurer Planned completion date for corrective action plan: December 31, 2026

View Audit 412000

Finding 1236325 (2025-004)

Material Weakness 2025

Dawson County

MT

Reporting

FINDING 2025-004: Airport Grant Reporting Response: We have followed up with the persons responsible for airport grant reporting, reminding and asking them to ensure that the reporting is being completed and including our office with copies.

View Audit 411951

Finding 1236323 (2025-001)

Material Weakness 2025

Medical Debt Resolution, Inc.

NY

Subrecipient Monitoring Reporting

Finding Number: 2025-001 Compliance Requirement: Reporting Programs: United States Department of the Treasury • ALN Number: 21.027 • ALN Name: Coronavirus State and Local Fiscal Recovery Funds • Contract Periods: August 1, 2025 – September 30, 2025 (County of Orange, Florida); October 1 - December 3...

Finding Number: 2025-001 Compliance Requirement: Reporting Programs: United States Department of the Treasury • ALN Number: 21.027 • ALN Name: Coronavirus State and Local Fiscal Recovery Funds • Contract Periods: August 1, 2025 – September 30, 2025 (County of Orange, Florida); October 1 - December 31, 2025 (County of Orange, Florida); October 1, 2025 - December 31, 2025 (Oakland County, Michigan); January 1, 2025 – March 31, 2025 (Kalamazoo, Michigan) Management’s Corrective Action Plan: Management acknowledges the finding and agrees that additional improvements are needed to ensure timely submission of required grant reports and consistent retention of supporting documentation. The exceptions identified resulted from two primary factors. The Orange County report was submitted after the due date due to an unusually short 10-day reporting deadline. The remaining late reports occurred while management was implementing corrective actions associated with the prior-year reporting finding and strengthening its grant reporting processes. While those improvements were underway, certain reporting requirements were not completed within the required timeframe. Management has since submitted all outstanding reports, and all identified reporting deficiencies were resolved prior to the audit completion deadline of September 30, 2026. To prevent recurrence, management has implemented and continues to enhance a centralized grant reporting tracker, assigned clear reporting ownership and oversight responsibilities, strengthened monitoring of upcoming deadlines, and standardized the retention of submission confirmations and related supporting documentation. Management will continue periodic reviews of reporting compliance to ensure reporting obligations are completed timely and adequately documented. Responsible Officials: Vice President, Finance & Administration (Fiscal Reporting) and Vice President, Government Initiatives (Performance Reporting)

View Audit 411940

Finding 1236320 (2025-002)

Material Weakness 2025

Centra Health, Inc.

VA

Student Financial Aid Internal Control / Segregation of Duties Special Tests & Provisions

2025-002 – Special tests and provisions: The Registrar at Centra College has implemented improved tracking and review procedures to ensure all applicable student enrollment is identified and reported to NSLDS within the required timeframe. The Registrar will continue to monitor NSLDS reporting requi...

2025-002 – Special tests and provisions: The Registrar at Centra College has implemented improved tracking and review procedures to ensure all applicable student enrollment is identified and reported to NSLDS within the required timeframe. The Registrar will continue to monitor NSLDS reporting requirements, including program-specific reporting practices, and maintain appropriate documentation and oversight to support complete and timely reporting. Name of Contact Person Responsible for Corrective Action: Guin Klous Centra College Financial Aid & Compliance Officer 434-200-7025 guin.klous@centrahealth.com

View Audit 411931

Finding 1236303 (2025-001)

Material Weakness 2025

Grady Memorial Hospital Corporation

GA

Allowable Costs / Cost Principles Cash Management Reporting § 200.303

Condition: An invoice totaling $34,675.10 was incorrectly included in a reimbursement request at $34,975.10, resulting in an overstatement and reimbursement of $300. The error was determined to be the result of a manual data-entry (keystroke) error when transcribing invoice information to the sponso...

Condition: An invoice totaling $34,675.10 was incorrectly included in a reimbursement request at $34,975.10, resulting in an overstatement and reimbursement of $300. The error was determined to be the result of a manual data-entry (keystroke) error when transcribing invoice information to the sponsor's reimbursement template. The underlying invoice support was accurate; however, the amount entered on the reimbursement form differed from the source documentation by $300. Corrective Action: To strengthen compliance with internal control requirements under 2 CFR 200.303, management reimbursement requests will continue to undergo a secondary review that verifies invoice amounts, supporting documentation, calculations, and reimbursement totals prior to submission. Management recognizes that despite maintaining a robust system of internal controls and multiple levels of review, no system of internal control can eliminate the possibility of isolated human error in processes that require manual data entry. Given the volume and complexity of grant activity administered by the organization, management believes this exception represents an isolated clerical error rather than a systemic control weakness. Management will continue to review sponsor invoices to ensure consistency will allowable costs incurred during the invoice period. Responsible Official: David Noble, Director, Grant Administration Implementation Date: Ongoing Expected Result: These corrective actions are designed to provide reasonable assurance that reimbursement requests are accurate, supported, and reviewed prior to submission, thereby reducing the risk of errors and strengthening compliance with Uniform Guidance requirements.

View Audit 411922

Finding 1236299 (2025-001)

Material Weakness 2025

City of Conway, Arkansas

AR

Reporting § 200.328

Contact Name: Tyler Winningham Contact Phone Number: 501-450-6101 Audit Firm: Forvis Mazars, LLP Audit Period: December 31, 2025 Finding #2025-001 – Statement of Condition: Auditors reviewed the quarterly SF-425 reporting requirements for FAA grants open during fiscal year 2025 and identified that t...

Contact Name: Tyler Winningham Contact Phone Number: 501-450-6101 Audit Firm: Forvis Mazars, LLP Audit Period: December 31, 2025 Finding #2025-001 – Statement of Condition: Auditors reviewed the quarterly SF-425 reporting requirements for FAA grants open during fiscal year 2025 and identified that the required quarterly reports had not been submitted for Grant Nos. 3-05-0089-012-2023 and 3-05-0089-014-2025. Accordingly, the City's control over Federal award reporting did not operate effectively. Response: Management agrees with the finding and will implement a centralized grant reporting tracker that identifies reporting deadlines, assigns responsibility for preparation and review, and documents management's verification that required reports are submitted timely. The matter will be corrected by December 31, 2026.

View Audit 411915

Finding 1236298 (2025-003)

Material Weakness 2025

Healing Transitions, Inc.

NC

Reporting Cash Management

2025-003 Preparation of the Schedule of Expenditures of Federal Awards. • Prior year audit finding: 2024-004 Recommendation: The SEFA should be prepared and reconciled to the general ledger by an employee knowledgeable of the grant activity for the year. Someone other than the preparer should review...

2025-003 Preparation of the Schedule of Expenditures of Federal Awards. • Prior year audit finding: 2024-004 Recommendation: The SEFA should be prepared and reconciled to the general ledger by an employee knowledgeable of the grant activity for the year. Someone other than the preparer should review the SEFA for accuracy and completeness to identify any errors and maintain proper internal controls over the preparation of the SEFA. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Organization contracted with Ascend Nonprofit Solutions to provide outsourced financial accounting services beginning November 1, 2025 through Ascend’s Finance Shared Services model. The Organization will implement dual controls over preparation of the SEFA. The SEFA will be prepared by an employee knowledgeable of the grant activity for the year. Ascend will then review the SEFA for accuracy and completeness in accordance with the financial records prior to submission. Name(s) of the contact person(s) responsible for corrective action: Chris Budnick, Executive Director Planned completion date for corrective action plan: July 2026

View Audit 411913

Finding 1236291 (2025-005)

Material Weakness 2025

Elbert County, Georgia

GA

Internal Control / Segregation of Duties Procurement, Suspension & Debarment Reporting

Response/Corrective Action Plan: We concur with the recommendation. We will work to implement policy and procedures over federal grants.

View Audit 411905

Finding 1236278 (2025-009)

Material Weakness 2025

City of Linden, Texas

TX

Reporting § 200.502

Management will implement a documented year-end SEFA reconciliation and review process. The process will require reconciliation of federal expenditures to the general ledger and grant records, review by Assistance Listing number, and supervisory approval before issuance of the SEFA.

View Audit 411896

Finding 1236271 (2025-001)

Material Weakness 2025

Regional Office of Education #47

IL

Reporting Allowable Costs / Cost Principles Cash Management § 200.303

Corrective Action Plan FINDING 2025-001 – Noncompliance with Grant Requirements CONDITION: The Regional Office of Education #47 did not maintain adequate internal controls over the grant accounting and financial reporting process. While the Regional Office of Education #47 maintains controls over th...

Corrective Action Plan FINDING 2025-001 – Noncompliance with Grant Requirements CONDITION: The Regional Office of Education #47 did not maintain adequate internal controls over the grant accounting and financial reporting process. While the Regional Office of Education #47 maintains controls over the processing of expenditures, there are not sufficient controls over the general ledger and financial statement reporting process for management or employees in the normal course of performing their assigned functions to prevent, or detect and correct, discrepancies between grant expenditures reports, the general ledger, financial statements, and supplementary information. During our review of the Regional Office of Education #47’s grant expenditures, it was noted that the Regional Office of Education #47 did not have adequate controls to ensure accuracy and consistency between grant expenditures reports, general ledger, financial statements, and supplementary information. Audit procedures revealed differences between the grant expenditures reports and the Regional Office of Education #47’s financial statements and General Ledger (GL) as shown below: Total Expenditures Per Grant Reports and the Schedule of Difference Federal Grants Expenditures of Total Expenditures Over Assistance Listing Federal Awards Per Financial (Under) Number (SEFA) Statements and GL Stated ARP - McKinney Education for Homeless Children 84.425W $112,133 $124,432 $(12,299) ARP - Community Partnerships 84.425U 2,475 3,300 (825) McKinney Education for Homeless Children 84.196A 123,965 121,671 2,294 Federal Grants Net Difference $(10,830) Total Total Expenditure Expenditures Per Financial Difference State Grant Per Grant Statements Over Code Reports and GL (Under) Computer Science 2025 -3999 $43,567 $27,723 $15,844 Less Expenditures disbursed in FY26 (10,627) State Grant Net Difference $ 5,217 Management was unable to provide documentation to support and reconcile the federal and State grant differences of $(10,830) and $5,217, respectively. PLAN: The Regional Office of Education #47 will strengthen its grant reconciliation procedures by implementing a formal reconciliation process for all federal and state grant reports prior to submission and as part of the year-end closing process. Grant expenditure reports will be reconciled to the general ledger and financial statements, and the reconciliation will be documented and reviewed by a responsible official with preparer and reviewer sign-offs maintained in the grant file. While all grant funds were properly accounted for and no questioned costs were identified, these additional procedures will provide enhanced documentation and ensure consistency between grant reports, the general ledger, and the financial statements. ANTICIPATED DATE OF COMPLETION: Fiscal Year 2027 CONTACT PERSON: Mr. Chris Tennyson, Regional Superintendent for Lee, Ogle, and Whiteside Counties.

View Audit 411874

Finding 1236258 (2025-001)

Material Weakness 2025

Frannie Peabody Center

ME

Reporting Internal Control / Segregation of Duties

Noncompliance with Housing Quality Requirements

View Audit 411847

Finding 1236258 (2025-001)

Material Weakness 2025

Frannie Peabody Center

ME

Reporting Internal Control / Segregation of Duties

Criteria: The Organization’s major program agreements carry with it certain periodic housing quality requirements, in which a housing quality inspection must be completed annually. At the time the inspection is completed it must be documented as to whether the unit was in need of any repairs and if ...

Criteria: The Organization’s major program agreements carry with it certain periodic housing quality requirements, in which a housing quality inspection must be completed annually. At the time the inspection is completed it must be documented as to whether the unit was in need of any repairs and if such necessary repairs have been fixed. Condition: We noted one instance in which documentation for the scheduling of the housing quality inspection was located, but the inspection report and the determination of whether the unit needed repairs could not be located. Known Questioned Costs: None Likely Questioned Costs: None Context: As part of our testing of the housing quality inspection requirements for ALN #14.241, we noted one instance, out of forty unit inspections tested, in which documentation for the scheduling of the housing quality inspection was located, but the inspection report and the determination of whether the unit needed repairs could not be located. Cause: Management oversight. Effect: Untimely completion of housing quality inspection and completion of repairs could result in units not meeting the housing quality standards. Repeat Finding: No Recommendation: We encourage the Organization to continue its efforts to ensure that all documentation of the completion of unit inspections and completion of repair work, if any, be maintained in a central location easily accessible by all authorized users. Views of responsible officials and planned corrective action: We are in agreement with the finding. Management is in the process of creating an updated process/system to ensure compliance with this requirement moving forward

View Audit 411847

Finding 1236252 (2025-004)

Material Weakness 2025

MacOmb County

MI

Reporting Significant Deficiency Matching / Level of Effort / Earmarking § 200.303

The County acknowledges that certain required reports were not submitted within the required timeframes. This finding is consistent with the 2024 Single Audit, and due to the timing of the two audits, the County had limited opportunity to implement the prior corrective action. The County will begin ...

The County acknowledges that certain required reports were not submitted within the required timeframes. This finding is consistent with the 2024 Single Audit, and due to the timing of the two audits, the County had limited opportunity to implement the prior corrective action. The County will begin requesting required information during the first month of the performance year and will track and follow up on outstanding requests until received. These efforts will be documented to support compliance and the timely submission of required reports.

View Audit 411844

Finding 1236242 (2025-004)

Material Weakness 2025

Pipestone County

MN

Subrecipient Monitoring Procurement, Suspension & Debarment Allowable Costs / Cost Principles § 200.303 § 200.318

Finding Number: 2025-004 Finding Title: Federal Awards Internal Control Policy and Procedures 1. Explanation of Disagreement with Audit Finding: There is no disagreement with the audit finding. 2. Actions Planned in Response to Finding: County management will develop and formally adopt a federal exp...

Finding Number: 2025-004 Finding Title: Federal Awards Internal Control Policy and Procedures 1. Explanation of Disagreement with Audit Finding: There is no disagreement with the audit finding. 2. Actions Planned in Response to Finding: County management will develop and formally adopt a federal expenditures policy to establish procedures for administering and monitoring federal awards in accordance with Uniform Guidance requirements. The policy will address internal controls over compliance, allowable costs, reporting requirements, record retention, and other applicable federal compliance requirements. Management will also communicate the policy to appropriate personnel responsible for administering federal programs. 3. Official Responsible for Ensuring CAP: Steve Ewing, County Administrator, is the official responsible for ensuring corrective action plan. 4. Planning Completion Date for CAP: 12/31/2026 5. Plan to Monitor Completion of CAP: County management will review the policy periodically to ensure it remains current with federal requirements and will monitor compliance with the policy through the administration and oversight of federal programs.

View Audit 411842

Finding 1236240 (2025-002)

Material Weakness 2025

The Family Conservancy, INC

KS

Reporting

Identifying Number: 2025-002 Finding: The Agency did not submit its Data Collection Form (DCF) and reporting package to the Federal Audit Clearinghouse (FAC) by the required Uniform Guidance deadline. The submission occurred on October 1, 2025, one day after the required filing date, resulting in no...

Identifying Number: 2025-002 Finding: The Agency did not submit its Data Collection Form (DCF) and reporting package to the Federal Audit Clearinghouse (FAC) by the required Uniform Guidance deadline. The submission occurred on October 1, 2025, one day after the required filing date, resulting in noncompliance with federal reporting requirements. Corrective Actions Taken or Planned The Agency concurs with the finding. Although the Agency was working toward timely submission of the DCF and reporting package, they were submitted one day after the required filing date due to delays resulting from finance staff transitions. To ensure compliance with Uniform Guidance reporting requirements and prevent future late submissions, the following corrective actions will be implemented: 1. Establish a Formal Reporting Calendar A centralized compliance calendar will be created to track all Single Audit deadlines, including the DCF, and reporting package submission requirements. • Calendar will include automated reminders. • The calendar will be reviewed monthly by the VP of Finance and Controller. 2. Assign Clear Responsibility for FAC Submission VP of Finance and Controller will be formally assigned responsibility for preparing and submitting the DCF and reporting package. • Roles and responsibilities will be documented. 3. Strengthen Written Policies and Procedures The Agency will update its written procedures to include: • Detailed steps for preparing and submitting the DCF and reporting package to FAC. These procedures will be reviewed annually and updated as needed. Contact Persons Responsible for Corrective Action Vice President of Finance and Controller Anticipated Completion Dates • Reporting calendar implemented: September 30, 2026 • Written procedures updated: October 31, 2026

View Audit 411833

Finding 1236224 (2025-001)

Material Weakness 2025

The Family Conservancy, INC

KS

Reporting Allowable Costs / Cost Principles

Identifying Number: 2025-001 Finding: During testing, it was identified that the annual Federal Financial Report (SF-425) was not submitted by the reporting deadline prescribed in the grant terms and conditions and Office of Head Start reporting requirements. As a result, the Agency did not comply w...

Identifying Number: 2025-001 Finding: During testing, it was identified that the annual Federal Financial Report (SF-425) was not submitted by the reporting deadline prescribed in the grant terms and conditions and Office of Head Start reporting requirements. As a result, the Agency did not comply with federal reporting requirements applicable to the program. Corrective Actions Taken or Planned The Agency concurs with the finding. Although the SF-425 was prepared and initially submitted by the deadline, it was not certified as required for submission until after the deadline due to finance staff transitions and delays in obtaining system access. To ensure compliance with federal reporting requirements and strengthen internal controls, the following corrective actions will be implemented: 1. Establish a Formal Reporting Calendar and Tracking System A centralized reporting calendar will be developed to track all federal reporting deadlines, including SF-425 submissions. The calendar will include automated reminders and will be reviewed monthly by finance leadership to ensure timely preparation and submission. 2. Implement Supervisory Review and Sign-Off Procedures A supervisory review process will be implemented for all federal reports. The VP of Finance or Controller will verify the accuracy of cumulative expenditures and ensure the SF-425 is supported by accounting records before submission. 3. Strengthen Internal Controls and Written Procedures Written procedures will be updated to include detailed steps for preparing, reviewing, and submitting the SF-425. Procedures will clearly define roles, responsibilities, timelines, and documentation requirements. 4. Staff Training on Federal Reporting Requirements Finance and grants staff will receive training on SF-425 reporting requirements, Uniform Guidance reporting standards, and Head Start financial reporting expectations. Training will include review of the finding and emphasize the importance of timely and accurate reporting. 5. Continuity Controls to Address Turnover Risk To mitigate the impact of staff turnover, responsibility for federal reporting will be assigned to both a primary and secondary staff member. Cross-training will be implemented to ensure continuity and reduce reliance on a single individual. Contact Persons Responsible for Corrective Action Vice President of Finance and Controller / Head Start Fiscal Coordinator Anticipated Completion Dates • Reporting calendar and tracking system implemented: September 30, 2026 • Written reporting procedures finalized: October 31, 2026 • Staff training completed: November 30, 2026

View Audit 411833

Finding 1236220 (2025-002)

Material Weakness 2025

Town of Bellingham, Massachusetts

MA

Reporting Internal Control / Segregation of Duties

Finding 2025-002 COVID 19 - Coronavirus State and Local Fiscal Recovery Fund - AL No. 21.027 U.S. Department of Treasury Norfolk County Other Matters Related to Internal Control over Compliance of the Major Program Co11ditio11: Upon review of the Town of Bellingham's report filed with Norfolk County...

Finding 2025-002 COVID 19 - Coronavirus State and Local Fiscal Recovery Fund - AL No. 21.027 U.S. Department of Treasury Norfolk County Other Matters Related to Internal Control over Compliance of the Major Program Co11ditio11: Upon review of the Town of Bellingham's report filed with Norfolk County it was noted that one of the repmts submitted to Norfolk County did not agree with the Town's accounting ledgers. Criteri{I: The Town was required to submit quaiterly performance repmts to Norfolk County that are in agreement with the Town's accounting ledgers. Context: The quarterly report submitted to Norfolk County for the time period of October 1, 2024 through December 31, 2024 did not agree to the Town's accounting ledgers as they included returned funds to Norfolk County that were included in the project expense for the period being repo1ted in error. Effect: The Town of Bellingham was not in compliance with the Norfolk County repo1ting requirements. Questioned Costs: NIA- No questioned costs as it relates to repotting errors. Cause: The funds returned to Norfolk County were returned using an expense account, not a revenue account. This is why the returned funds were included in the expenditure report, sent to Norfolk County. Identification {IS a Repeat Finding: NIA - This is not a repeat finding. Recommendation: The Town of Bellingham should ensure that the repo1ts submitted to Norfolk County are in agreement with the Town's accounting ledgers. Responsible for Corrective Plan: CFO Estimated Completion Date: December 2026 Action Taken: Going forward, returning unexpended funds will not be treated as an expenditure.

View Audit 411832

Finding 1236215 (2025-002)

Material Weakness 2025

New York College of Traditional Chinese Medicine

NY

Student Financial Aid Special Tests & Provisions Reporting

2025-002: Untimely Paid Credit Balance- Student Financial Assistance Cluster - (a) Federal Direct Student Loans -ALN # 84.268 - Year Ended December 31, 2025 Criteria: An institution must pay credit balances to students within fourteen days of the creation of such credit or within fourteen days of th...

2025-002: Untimely Paid Credit Balance- Student Financial Assistance Cluster - (a) Federal Direct Student Loans -ALN # 84.268 - Year Ended December 31, 2025 Criteria: An institution must pay credit balances to students within fourteen days of the creation of such credit or within fourteen days of the date the institution performs the Return calculation for withdrawn students. When a valid waiver has been obtained, an institution must pay the remaining balance on loan funds by the end of the loan period and any remaining other Title IV program funds by the end of the last payment period in the award year for which the funds were awarded (34 CFR 668.164 and 668.165). Condition: Sikich tested thirty-seven files, twenty-two of which had credit balances, and two students’ credit balances were not paid in a timely manner. We consider this finding to be an instance of non-compliance. Responsible Person: Darren Zhang Corrective Action Plan: The two students identified in this finding involve the same credit balance issue that was identified during the FY2024 audit. Although these transactions occurred in 2025, they occurred before the FY2024 audit was completed in September 2025 and before the related corrective measures were implemented. Therefore, these cases reflect our previous practice rather than a recurrence of the issue after the corrective actions were implemented. Under our previous practice, based on the option selected by the student on the Credit Balance Authorization Form, a student’s credit balance could be retained in the student’s account for future charges, including charges in the following award year. During the FY2024 audit, we became aware that Title IV loan credit balances retained under a valid authorization must be paid to the student by the end of the applicable loan period. Following the completion of the FY2024 audit in September 2025, we strengthened its procedures for monitoring Title IV credit balances and implemented a compliance calendar reminder to help ensure that credit balances are refunded within the required timeframe. The school also revised its Credit Balance Authorization Form. The previous option, “Leave the funds in my account and any remaining funds from the current award year in my account for next award year,” was revised to: “Leave the funds in my account and any remaining funds from the current award year in my account up to the end of the loan period.” These corrective measures have been implemented to ensure that Title IV credit balances are properly monitored and refunded within the applicable timeframe. Implementation Date: 09/26/2025

View Audit 411827

Finding 1236214 (2025-001)

Material Weakness 2025

New York College of Traditional Chinese Medicine

NY

Student Financial Aid Reporting Matching / Level of Effort / Earmarking

2025-001: Inaccurate Enrollment Status Reporting- Student Financial Assistance Cluster - (a) Federal Direct Student Loans -ALN # 84.268 - Year Ended December 31, 2025 Criteria: Institutions are required to provide enrollment update responses to the Enrollment Reporting Roster File within fifteen day...

2025-001: Inaccurate Enrollment Status Reporting- Student Financial Assistance Cluster - (a) Federal Direct Student Loans -ALN # 84.268 - Year Ended December 31, 2025 Criteria: Institutions are required to provide enrollment update responses to the Enrollment Reporting Roster File within fifteen days of receipt (34 CFR 685.309). Condition: Sikich tested thirty-seven files and one student had enrollment status effective dates incorrectly reported to the National Student Loan Data System (NSLDS). This finding is repeated and was reported in the prior year as 2024-001. We consider this finding to be an instance of Noncompliance. Responsible Person: Darren Zhang Corrective Action Plan: This enrollment reporting issue identified for this student occurred in 2025, while the FY2024 audit was still in progress. The FY2024 audit was not completed until September 2025, and the corrective action related to the FY2024 finding was fully implemented on September 30, 2025. Therefore, although this finding relates to the same general area of enrollment status reporting as the prior-year finding, this particular instance occurred before the FY2024 audit was completed and before the related corrective measures were implemented. As stated in the FY2024 Corrective Action Plan, we reviewed the enrollment maintenance schedule and revised our procedures to ensure that enrollment status updates are completed within the required timeframe. The revised procedures were fully implemented beginning with the September 30, 2025 scheduled enrollment update. In addition, we have strengthened our review of enrollment status effective dates to ensure that the dates reported to NSLDS are consistent with our school records. Any discrepancies identified during the review will be corrected promptly. We will also review the NSLDS record and supporting documentation for the student identified in this finding and make any necessary correction to the enrollment status effective date. Implementation Date: 09/30/2025

View Audit 411827

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